With significant return on investment led by leasehold lands, Napier will keep its proportion of rates to income to about 51 per cent, while in Hastings the proportion is 62 per cent. In CHB it is about 69 per cent.
Higher debt and servicing has for some years meant higher rates in Hastings, with figures released last September showing Hastings District debt averaging $119 per household compared with Napier's $60 per household.
Napier Mayor Kirsten Wise said the impact of Covid-19 on council business activities, plus the loss of council income and proposed relief package has resulted in a total rates impact of 11.96 per cent - in addition to the initial 6.5 per cent forecast increase.
"Recognising the hardship faced by our community at this time, this of course was never an option and we have worked very hard over the past four to five weeks to reduce this," she said.
The council is also looking at its longer-term big-ticket items, such as the National Aquarium redevelopment and a new swimming pool complex to test what the city can afford.
Hastings Mayor Sandra Hazlehurst said her district's 1.9 per cent proposal
excludes the impact of changing to a new refuse and recycling service, and has been achieved through re-budgeting and achieving cost efficiencies and savings.
"The council knows that this year is going to be a particularly challenging one for the community. We understand that Covid-19 and the drought are having an impact on businesses and that there will be job losses.
"Although we don't know the full extent of this yet it's important that we are being responsive, and at the same time continue to deliver a high level of service and invest in projects to support the local economy and jobs going forward."
Hazlehurst said the investment for the 2020-2021 financial year includes a capital expenditure programme of about $100 million.
Her council has also developed a new procurement strategy and policy that targets council spending with local businesses to provide local employment and training opportunities – at the same time as achieving the best value for money for ratepayers.
As well as making operational costs savings where they can be achieved, the forecast increase in the targeted water rate to fund the council's drinking water strategy, which remains a priority, has been able to be reduced.
Another budgeting initiative is to redirect the proceeds of asset sales, such as the council's Orchard Rd works depot, into a contingency fund to cover potential additional Covid-19 and other as yet unforeseen costs.
In Napier Mayor Wise said Covid-19 has had significant impact on council finances, with an anticipated rates deficit of around $3.1m for the rest of the current financial year and lost revenue of $7.5m in the following year.
Much of the projected downturn is due to closure of tourism facilities, community and sports facilities and pools, as well as reduced regulatory income.
The preferred option is a rates rise of 4.8 per cent with the recommendation to fund the operating gap of $6.74m from council reserves, $4m from the Parking Reserve, and $2.74m from the Suburban and Urban Growth Fund.
The Wairoa District Council meets on Tuesday, facing an original forecast of about a 10 per cent increase intent on getting it below 5 per cent.
"It's going to be quite difficult," said Mayor Craig Little.
The Tararua District Council also considers its position this month, with the dual impacts of Covid-19 and the drought enveloping its area stretching from Norsewood to Eketahuna.
